Opinion Editorial

Wednesday, October 7, 1998  

Even Losing Votes Help Advance Issues

As we approach Election Day 1998, both major parties are moving to shore-up their bases. For Republicans, this means bringing a tax cut up for a vote; for Democrats, an increase in the minimum wage. It matters little whether the legislation passes, for it is a no-lose proposition. If the legislation passes, supporters can tout their success; if it fails, they can assail their opponents for thwarting the will of the people. Either way, supporters get an election issue.

On September 26, the Republicans brought their tax cut to a vote in the House. It passed, but will likely die in the Senate. A few days earlier, on September 22, Democrats brought a minimum wage bill to a vote in the Senate. With little advance preparation and following a minimum wage increase that took effect just last year, there was never much chance that this effort would succeed, and it didn't. By a vote of 55 to 44 the Senate voted down the minimum wage bill on virtually a straight party-line vote.

Although these efforts may appear to be futile gestures, they are not. Not only do they energize party activists, but in many cases they are just the opening round of a multi-pronged strategy. For example, at the state and local government level there are often ballot initiatives designed to implement locally programs that cannot pass in Washington. The efforts that go into a losing struggle in Washington, however, can often provide research, arguments and energy to local activists, so that the effort is not wasted.

A case in point is the minimum wage. Having failed for many years to get an increase in the federal minimum wage, supporters of a higher minimum wage turned to local initiatives. These initiatives generally call for a "living wage" to be required in government employment and contracting. Typically, a city or county will insist that companies they do business with pay their employees some arbitrarily-defined "living wage", set well above the minimum wage. Baltimore, Boston and Los Angeles are among the cities that have "living wage" ordinances.

In November, supporters of the "living wage" will bring their campaign to the Washington suburbs. Voters in Montgomery County, Maryland will have the opportunity to vote on a requirement that companies doing business with the county pay their workers at least 130 percent of the poverty level income for a family of four. That would be $21,382 this year or $10.28 per hour.

Of course, the impact of such a requirement is inherently limited. Most companies involved in government contracting already pay well above the minimum wage. Those few that don't are usually service providers that can avoid increasing wages for all their workers by setting up subsidiaries just for government contracting work.

Ironically, insofar as these "living wage" campaigns work, they end up hurting many of those they claim to help. By increasing government labor costs, either taxes must rise or spending must be cut. Reduced spending often falls on social services, while the higher taxes often hit the poor hardest. That is because local government tax systems tend to be regressive, relying more on sales taxes than income taxes.

In the end, the effectiveness of such efforts in achieving their stated goals is less important than giving activists an opportunity to stay active. It helps keep issues alive and keeps the ball moving forward until political conditions at the national level improve. And in some cases, a local initiative can even spark a national debate, as so many California state initiatives on taxes, immigration and race have done. For these reasons, even losing efforts can be successful.

Source: Bruce Bartlett, senior fellow, National Center for Policy Analysis, October 7, 1998.



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